BHP Iron Ore, Coal Production Ahead of Estimates; Coles Sales Rise

Marcus Jacob
20 Apr, 2011
New York City

Australian stocks gained as commodities advanced and crude oil price gained. The Australian dollar gained and import price index increased 1.4% in the first quarter to March. BHP Billiton reported higher than expected coal and iron ore production in March.

[R]5:00 PM Sydney – Australian stocks gained as commodities advanced and crude oil price gained. The Australian dollar gained and import price index increased 1.4% in the first quarter to March. BHP Billiton reported higher than expected coal and iron ore production in March.[/R]

The ASX 200 index increased 65.70 to 4,859.00 and All Ordinaries added 65.90 or 1.4% to 4,940.20.

The Australian dollar advanced to US$1.0653 and crude oil gained US$1.52 to US$109.80. Gold in Sydney closed at US$1,502.50, up US$10.33 an ounce.

The Australian dollar gained after its terms of trade moved higher in the first quarter. Australian import price index increased 1.4%.

BHP Production Report

BHP Billiton reported higher than expected production in third quarter.

Iron ore production declined only 1% from the previous quarter to 33.23 million tons and coking coal production dropped 14% to 6.67 million tons and manganese dropped 26% to 5.3 million tons.

Iron ore production rose 7% from the previous year quarter despite inclement weather conditions in Western Australia and in Queensland. Thermal coal production increased 7% from a year ago quarter to 17.5 million tons.

BHP is still using force majeure clause for the supply from Bowen Basin production and lagging in improving supply at a faster pace. Rio Tinto last week lifted the clause and resumed the normal supply.

Coles Discounting Drives Sales

Coles said food and liquor sales increased 7.2% in the third quarter to $5.9 billion. Sales at Kmark declined 2.5% and at Target fell 0.1%. Hardware store Bunnings increased 8.1% to $1.67 billion and Officeworks sales increased 3.6% to $405 million.

Stock Movers

BHP Billiton added 56 cents to $47.23 and Rio Tinto gained $1.02 to $83.12. Newcrest Mining added $1.02 to $41.82.

BHP advanced after it reported strong third quarter production report and iron ore output gained.

PanAust increased 3 cents to 76.50 cents after the company said its production schedule at its Laos operation is in line with its expectations and costs are below its estimates.

Woodside Petroleum added 55 cents to $46.60 and the energy explorer held its annual meeting in Perth today.

Banks closed higher. ANZ increased 44 cents or 1.9% to $23.84.

Wesfarmers increased 47 cents to $33.37 and Woolworths added 5 cents to $26.53.

Australian Pharmaceutical Industries increased 1.5 cents to 30 cents after it reported half-year loss and reaffirmed its outlook for the full-year profit.